Cheong Wa Dae Policy Chief: "2.5 Billion Won Apartment 720,000 Won, 35 Million Won Grandeur 650,000 Won"

Lee Ho-seung, Blue House Policy Chief, Refutes 'Comprehensive Real Estate Tax Bomb' Claim... "Comprehensive Real Estate Tax Has a Kind of Noblesse Oblige Character"

[Asia Economy Reporter Ryu Jeong-min] Lee Ho-seung, Chief of Policy at the Blue House, stated in an interview with KBS Radio's 'Choi Kyung-young's Strongest Current Affairs' on the 24th, "When comparing a 2.5 billion won apartment and a 35 million won Grandeur, it seems somewhat lacking to say this is a bombshell to that extent."

Lee cited the case of a friend in his 50s who owns a Grandeur passenger car to refute the so-called comprehensive real estate tax (종부세) bomb theory. He explained, "I have a friend in his 50s who has owned an apartment worth about 2.5 to 2.7 billion won for 12 years, and upon checking, the 종부세 was 720,000 won," adding, "If it’s a 2500cc Grandeur, the automobile tax is 650,000 won."

Lee asserted, "It is true that the 종부세 burden has significantly increased for multi-homeowners and corporations, but sufficient notice was given over a long period, and there were plenty of ways to avoid it if one wished."

The view of the Blue House from Namsan, Seoul. Photo by Hyunmin Kim kimhyun81@

Lee claimed that 98% of the public do not receive 종부세 tax notices. He explained that single-homeowners subject to 종부세 receive up to 80% deductions based on conditions such as being over 60 years old and holding the property for more than five years, which reduces their burden. Lee stated, "The average 종부세 for those owning properties valued between 1.6 billion and 2 billion won is 270,000 won."

Lee said, "From the time 종부세 was introduced, it has been levied on those with considerable assets, and in that sense, it has a character similar to a holding tax," adding, "Most of the tax revenue is structured to be allocated primarily to local governments. I think it can be understood in a somewhat more positive light as a form of noblesse oblige practiced by the wealthier classes."

Meanwhile, regarding the ruling and opposition parties' moves to ease capital gains tax, Lee expressed caution, saying, "For single-homeowners, who are considered actual users, it is true that they should be somewhat protected by policy, but there is concern that if policy signals are miscommunicated before sufficient market stabilization, it could harm stability. I share those concerns."

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